Despite China’s highly favorable attitude towards blockchain, statistics record a 40 percent drop in Chinese blockchain investments.
The drop in Chinese blockchain investments
Chinese blockchain investments saw a record high spending in 2018 while the number declined again in 2019. Meanwhile, the number of deals and ventures decreased by 60 percent from the previous year.
As per the data collected by Rhino Data and Xinhua, a Chinese state-run media firm, the total amount of blockchain investment accounted for 24.4 billion Chinese yuan (approximately 3.6 billion dollars). The research published by Xinhua Finance reveals that the number was 40.8 percent less than the blockchain investments in 2019.
Regardless, 2019 sees a steady increase from 2017 in terms of both the amount invested as well as the number of investments made. 2017 only recorded 168 investment deals while 2019 saw over 240 blockchain-related investments being settled.
Xinhua also revealed the contribution of different types of investments. The research revealed that in 2019 43.3 percent of investments were made through funding rounds like Series A funding round. Another point to be noted is that the country’s blockchain community had low activity in the first half while the second half was buzzing with deas such as mergers and acquisitions, perhaps due to the announcement of a digital yuan.
China has been pushing for blockchain adoption in the country, which many believe is to set up a stage for a central bank digital currency (CBDC). The country’s president Xi Jinping also participated in the push for greater blockchain adoption. The President called for increasing the nation’s blockchain efforts in October, making a decline in investments a surprising result.
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